Bill1703
11 Sep 2017
Re: Negativity "Revenue is growing... it is a very dominant player within its sphere... it pays a good dividend... to me this is a safe defensive stock..."BW - revenue is only growing in the highly competitive parcels biz, where margins will always remain under pressure... it is only dominant in one part of the business, the one that is in long term structural decline - and this decline might be accelerating. Underlying operating profits are on a downtrend, though ongoing cost cutting is at least keeping that profile relatively flat.The dividend is indeed decent, though not growing that fast, and nor is it likely to... there is definite yield support now, with the yield hitting 6%, but there are plenty of other big yields elsewhere in the market.Defensive stock for sure, though not as "safe" as some... there are a number of sentiment issues (e.g. workforce militancy) which may well dissipate over time, though I fear the spectre of a Labour government under Corbyn may be with us for a while yet. And ultimately, while RMG is undoubtedly a relatively cheap stock (on some metrics at least), we are in the paradoxical situation where we supposedly have an "expensive" market, yet there is no shortage of equally cheap stocks in a number of sectors, and not all of them with the same structural concerns.So 380p is not far off "fair value" to me... perhaps £4 at a push. But I'd definitely need a yield closer to 6% than 5%, at least for the moment.
bushwhacker
11 Sep 2017
Negativity Dear All,There is a real negativity behind Royal Mail shares. To fall out of the FTSE 100 is a bad blow, but what I cannot understand is the sentiment that has caused the shares to fall to a value that allowed it to happen. In my opinion the company is worth ~ £5 per share in equity, of which a large percentage is tangible assets. The pension pot seems to be in a healthy state, which is more can be said than for a lot of other FTSE companies. Revenue is growing, given not at a start-up rate, but nevertheless growing. It is a very dominant player within its sphere, and could use its muscle to expand into other countries. It pays a good dividend etc. The fact that is was a government run institution has its downfalls, but as time progresses the competitive nature of a company will remove any of the inefficiencies left over, thus reducing costs and increasing profits. To me this is a safe defensive stock but recent price falls contradict this and I can't see a reason for the initial poor sentiment
Norman Barrington
08 Sep 2017
Re: 330 float price <<They have the ideas to make progress. >>Could have fooled me!
Ripley94
08 Sep 2017
Re: 330 float price My brain just wouldn't come up with his name . ( Ken Clark )I prefer them with strong beliefs and principles ,honesty , i like Ress -Mogg.Harder left or harder right.They have the ideas to make progress.
Ripley94
08 Sep 2017
Re: 330 float price Well you see my hart is with the left always has been.If i closed my eyes when listening to Theresa at last years conference i would of thought left.They might have more in common then you think .Example Duncun smith wanted to go easy on benefit cuts, ( that fat fella from Nottingham ( who i can not recall name off , Ex chancellor, big remainer ) wanted more cuts.R
gamesinvestor
08 Sep 2017
Re: 330 float price "prefer left and right."Rips -- in today's politics it's hard to tell the left from the right and also within the party as well as between them.I read somewhere that Moya was digging her heels in -- I'll see if I can find the article.Only 42p to go to get back to the float price and then the odious little man will be vindicated lol !!Games
Ripley94
08 Sep 2017
Re: 330 float price Obviously i am a little insane, as i would apologize if i was wrong, it would have nothing to do with my like or not of a particular person.I was not aware company was staying away from talks , i do not like sound of that as i support trade unions.I have never voted for liberals by the way prefer left and right.R
gamesinvestor
07 Sep 2017
Re: 330 float price "wonder if they will apologize to cable ? "Ripley, I can't imagine anyone wanting to apologise to the odious little man.The share price at the moment must be entirely driven by the uncertainty around a Christmas strike, no?If it doesn't happen it'll shoot back up. The company is staying away from talks.Games
Ripley94
06 Sep 2017
Re: Cable could yet be vindicated.......... I'm not sure what gone wrong since??Ramp on Share Prohets few days ago , the postmen i see work much longer hours then in past, we do not get as many delivery's or pick ups.Can not see its got less efficient and stamps keep going up.Bought back in @ 379p
Ripley94
06 Sep 2017
Re: Cable could yet be vindicated.............. Thread around the time.
Ripley94
06 Sep 2017
Re: 330 float price And look at the fuss that was made at the time.Labour might be able to buy it back cheaper , wonder if they will apologize to cable ?
gamesinvestor
05 Sep 2017
330 float price Is it heading back all the way?330 was the float price back in 2013?Games
IOMINVESTCOM
01 Sep 2017
Â…while deal isnÂ’t enough to sway Liberum …while deal isn’t enough to sway Liberum on Royal MailOn the other side of the deal, Liberum is encouraged by Royal Mail’s (RMG) sale, but believe it is not enough to outweigh the challenges facing the business.‘The valuation is broadly in line with our assumptions,’ said Liberum analyst Gerald Khoo.‘Royal Mail is making encouraging progress in crystallising value from its surplus land portfolio. However, it is delivering only modest incremental value that does not offset the challenging underlying fundamentals of the core business.’Khoo reiterated his ‘sell’ rating and 385p target price on the shares, which edged 3p higher to 392.6p yesterday.‘Our overall view on Royal Mail remains unchanged,’ he said. ‘Long term, we see the group as poorly positioned in the parcels market, with growth unlikely to fully offset the secular decline in letters revenue, in our view.’[link]
shovelier
31 Aug 2017
Re: 6 acres, £193m Sp went up a tad on the news yesterday by I don't anticipate a spike today.....it's now old news.I won't be adding to my holding but just staying put for the dividend which appears to go up with the falling sp whereas it's actually tied to one's individual average buying price.
picstloup
30 Aug 2017
6 acres, £193m Part of Mount Pleasant has been sold for £193m. Book value something like £29m. Not as good as it sounds, as £100m will go on buffing up the derelict sorting office, and much of the dosh won't come in until about 2023.Battersea is another big one, with £100m already sold (2.7 acres) and 11 acres left, all handy for the new American embassy..The property portfolio is the only reason I would add to my 233 shares here. And I don't think I will for the moment, but it will be interesting to see if the prices spikes back over £4 tomorrow, despite the FSE100 relegation.
